Hyderabad Metro loan: Revanth Reddy meets Vaishnaw over ₹13,600 crore IRFC funds
Synopsis
Telangana's fight for ₹13,600 crore in Hyderabad Metro Rail refinancing has turned into a full-blown Centre-state standoff. With the Chief Minister alleging political sabotage by a Union Minister from his own state, and the Centre yet to confirm Phase II participation, Monday's New Delhi meeting was as much about political optics as project finance.
Key Takeaways
Revanth Reddy met Railway Minister Ashwini Vaishnaw in New Delhi on 22 June over the Hyderabad Metro Rail IRFC loan.
At stake is ₹13,600 crore in term loan refinancing for Metro Phase I , acquired by the state from L&T .
Revanth Reddy claims the funds were released by a Japanese agency to IRFC at 4% interest but not transferred to the state.
Kishan Reddy denied allegations of political interference, saying the Phase II DPR and feasibility reports remain incomplete.
Revanth Reddy was set to meet Housing Minister Manohar Lal Khattar on Tuesday for further discussions.
Telangana Chief Minister A. Revanth Reddy, accompanied by Union Minister for Coal and Mines G. Kishan Reddy, met Railway Minister Ashwini Vaishnaw in New Delhi on Monday, 22 June to discuss a pending loan from the Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro Rail project. The Chief Minister's Office (CMO) described the discussions as positive, and Revanth Reddy called the talks 'constructive' when speaking to reporters after the meeting.
What Was Discussed
The central issue is a ₹13,600 crore term loan refinancing obligation tied to Hyderabad Metro Rail Phase I, which the Telangana state government acquired from Larsen and Toubro Limited (L&T). According to Revanth Reddy, the loan was originally secured from a Japanese entity at an interest rate of 4 per cent and must now be routed to the state through the IRFC. He claimed the Japanese agency had already released the funds to the IRFC, but the corporation had not transferred them to the state. 'We even submitted a letter securing the Reserve Bank's approval, yet the loan transfer was blocked,' he said.
The Political Flashpoint
The meeting comes a week after Revanth Reddy publicly demanded that the Centre release the ₹13,600 crore without further delay. He also sought clarity on whether the Centre would participate in Phase II of the Hyderabad Metro project. In those remarks, the Chief Minister alleged that Kishan Reddy had met Housing and Urban Affairs Minister Manohar Lal Khattar on 20 May and Railway Minister Vaishnaw on 21 May, urging them to withhold the funds — a charge he framed as politically motivated to damage the Indian National Congress (Congress) government in Telangana. 'That is precisely why we are questioning Kishan Reddy. Will you take the responsibility of releasing ₹13,600 crore today to Telangana or not?' he had asked.
Kishan Reddy's Rebuttal
Kishan Reddy rejected the allegations the following day, accusing Revanth Reddy of running a 'false campaign' against him. The Union Minister denied stalling Centre approval for Phase II or blocking funds for the Phase I takeover from L&T. He also claimed that, like the previous Bharat Rashtra Samithi (BRS) government, the current Congress administration was not genuinely committed to the metro project. Kishan Reddy pointed out that the Detailed Project Report (DPR), along with technical and financial feasibility reports for Phase II, had not yet been completed.
What Comes Next
Revanth Reddy announced after Monday's meeting that he would meet Housing and Urban Affairs Minister Manohar Lal Khattar on Tuesday morning for further discussions. The Chief Minister has also previously appealed to Prime Minister Narendra Modi and MP Etala Rajender to intervene and ensure Telangana receives what he described as its rightful share of funds. The outcome of the Khattar meeting and a formal Centre response on Phase II participation are now the key developments to watch.
Point of View
600 crore dispute is a textbook Centre-state financing standoff, but the political layering here is unusually sharp — a Telangana Congress CM publicly accusing a Telangana BJP Union Minister of sabotaging funds for a project in their shared home state. That the DPR for Phase II is reportedly still incomplete is a legitimate procedural point, but it does not directly explain the alleged hold-up on Phase I refinancing, where RBI approval is claimed to already exist. Until the Centre clarifies the exact procedural status of the IRFC transfer, both sides are essentially fighting a public relations battle over a bureaucratic log-jam.
NationPress
23 Jun 2026
Frequently Asked Questions
Why did Telangana CM Revanth Reddy meet Railway Minister Ashwini Vaishnaw?
Revanth Reddy met Vaishnaw on 22 June in New Delhi to resolve a pending ₹13,600 crore IRFC loan transfer for Hyderabad Metro Rail Phase I. The state government says the funds, sourced from a Japanese agency at 4% interest, have not been transferred to Telangana despite RBI approval.
What is the ₹13,600 crore Hyderabad Metro loan dispute about?
It concerns term loan refinancing for Hyderabad Metro Rail Phase I, which the Telangana government took over from Larsen and Toubro. A Japanese entity reportedly released the funds to IRFC, but the state alleges the corporation has not forwarded them, citing political interference.
What has G. Kishan Reddy said in response to the allegations?
Kishan Reddy rejected Revanth Reddy's charges as a 'false campaign,' denying that he stalled either Phase II approval or Phase I fund transfers. He said the Detailed Project Report and feasibility studies for Phase II are still incomplete, and questioned the Congress government's commitment to the project.
What is the current status of Hyderabad Metro Phase II?
Phase II is yet to receive Centre approval. According to Kishan Reddy, the Detailed Project Report along with technical and financial feasibility reports has not been finalised, making Centre participation premature at this stage.
What are the next steps after the New Delhi meeting?
Revanth Reddy announced he would meet Housing and Urban Affairs Minister Manohar Lal Khattar on Tuesday for further discussions on the Hyderabad Metro funding issue. A formal Centre response on Phase II participation is also awaited.
